The pair remains in the bearish impulse initiated off its peak price around 1.6820.
On Friday, the pair had retraced up to 1.6724, before prominent bearish rejection was expressed to achieve daily closure at 1.6615 resulting in a "Shooting-Star" daily candlestick. Since then, the pair has been moving sideways within a consolidation range extending between 1.6740-1.6600.
The breakdown of 1.6600 is essential to confirm reversal and trigger a stronger pullback, which will pause the short-term bullish momentum and open the way towards 1.6536 (50% Fibonacci Level of the swing between 1.6250/1.6821) and psychological Demand of 1.6500 as well.
Stabilization of 1.6600 protected the pair from further decline, with sideway consolidative phase seen preceding a possible attempt for a breakout.
Daily bulls were concentrated around 1.6600 considering it as an ideal reversal point.
The bears failed to breakdown this demand level resulting in a bullish engulfing 4H candlestick that's pushing again towards 1.6666.
Breakthrough above 1.6666 opens the way towards 1.6720/40. Breakthrough above which, is a must to bring bulls back to push towards 1.6770-1.6820 initially.
On the other hand, stabilization of 1.6666 ( the upper limit of the channel ) will bring bearish pressure to push towards 1.6540-1.6500 ( the lower limit of the channel ) initially.
The material has been provided by InstaForex Company - www.instaforex.com
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